Why banks and offshore hubs like Dubai are winners of the Senate killing the Clarity Act
One expert believes that the failure to pass the bill is a win for the banks that staunchly oppose stablecoin yields, while a global crypto lawyer believes overseas jurisdictions benefit.
Source: CoinDesk
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DW NOTE
The Clarity Act's failure leaves regulatory discretion with the SEC and CFTC — which means enforcement by press release continues — while banks preserve their deposit monopoly against yield-bearing stablecoins. Dubai and Abu Dhabi now inherit the capital and talent that regulatory fog repels from New York and San Francisco. The U.S. chose bank rents over financial innovation, so innovation relocates.